NO. 40

4 JULY 1994

Oil Prices

Libya Lowers July Oil Price Formulas

Lower profit margins for European refiners as a result of Dated Brent's moveupward are understood to have motivated Libya to reduce the July price formulasfor most of its crudes. Market sources say that the upswing in Dated Brent hasnot been accompanied by an increase in the price of products with the resultthat refiners are trimming their throughputs due to a shrinking spread betweenthe cost of crude oil supplies and...